Embassy News

Cyprus Ready For Euro Circulation 2001-12-27 11:50:54

Nicosia, Dec 27 (CNA) -- Cyprus Central Bank has allocated 13 million 500 thousand euros to commercial banks to use for exchange transactions as of January 1, 2002, since 12 European countries are giving up their national currency to adopt the common currency, euro.

Euro banknotes and coins were presented here today at a press conference at the Central Bank in Nicosia during which Cyprus Chief Negotiator with EU George Vassiliou expressed the belief that the introduction of euro will not cause devaluation of the pound but on the contrary will have a positive effect on it.|
Vassiliou said the circulation of euro was very important for Cyprus and expressed the belief that Cyprus will be among the first countries to join the EU that will adopt this currency.

He also noted that euro transactions in Cyprus will bring Cypriots closer to Europe and that its circulation in the 12 European countries will contribute to commercial development, reduce costs of commercial and individual transactions and reinforce tourism, expressing the conviction thateuroscepticism for this new currency will soon diminish.

Vassiliou added the euro circulation will lead to a decrease of inflation.

EU Ambassador to Cyprus Donato Chiarini said the adoption of euro was very important but noted that citizens were not well informed and there was a lack of positive acceptance even by older people due to the complexity of converting national currencies into euros.

He also noted that according to statistics euro would become the currency of about 5% of the total world population and expressed hope that Cyprus will use euros as well.

Euro bank notes and coins will be put into circulation in Austria,Belgium, France, Germany, Greece, Italy, Ireland, Spain, Luxembourg, Netherlands,Portugal and Finland. There will be seven different bank notes and eight coins.